The Risk Of The Venture Capital (vc) Project

THE STUDY ON THE RISK OF VENTURECAPITAL PROJECTManagement Science and EngineeringPostgraduate: Deng FuminTutor: Lu RuoyuVenture Capital (VC) came of The United States in the late nineteenth century. But until 1946. it just formally ascended to the history stage because of the foundation of American Research Development (ARD). From then on the Venture Capital activities spread all over the ~vest advanced countries and quickened the development pace of western nations' high-tech. by the ma in means of investing in high technology, which passed through method of investing in raw materials. Along with the arrival of knowledge economy times. Venture Capital becomes more and more important to every nation in the industrialization of technology achievements. Iii March (1998), the "No.1 Proposal'. which was submitted to the Chinese People's Political Consultative Conference by the Central Committee of China Natioiial Democratic Construction Association, has caused great mass fervor in studying Venture Capital in our country0 Among them, the research on venture capital project is one of the focal points in it0Based on the analysis to the present condition of the researches on the risk of venture capital project in home and abroad. research routes are put forward in this paper0 At the same time Venture Capital' s de~'elopment course, concept, function. essential factor and feature etc have been introduced concisely.In this paper, the risks of venture capital were analyzed and some venture principles of venture capital were brought forward0 Then an deep study on the risk factors of venture capital project spreaded out, so that four index of first-degree risk factors and more than ten index of second-degree ones were found outAdditionally, three kinds of models were nade in order to evaluate these indexes0Finally, in accordance with how to avoid the risks in venture capital~ some countermeasures and methods were brought forward in this paper...